- Litecoin price has remained above the 50-day moving average.
- LTC’s open interest has remained steady in the past few weeks.
- Focus shifts to the upcoming halving event scheduled for August.
Litecoin’s open interest remains at an elevated level even as LTC’s coin price recoils. LTC has dropped to $92.81, which was much lower than less than the year-to-date high of $152. This price action is in line with that of other cryptocurrencies like Bitcoin and Ethereum.
LTC open interest rises
Data compiled by CoinGlass shows that Litecoin’s open interest gas jumped sharply in the past few days. It peaked at over $611 million after the partial victory by Ripple Labs in its legal tussle against the Securities and Exchange Commission (SEC).
Since then, open interest has remained above $500 million, which is higher than where it averaged in June. Most of this open interest is coming from Binance, the biggest crypto exchange in the world. It has an open interest of over $202 million. It is followed by OKX, which has $135 million, and Bitget with $83 million.
Open interest is an important concept in the crypto industry because it shows the amount of unfilled orders in the futures market. A higher figure is usually a sign that there is more demand of a cryptocurrency.
Most of the biggest cryptocurrencies are seeing a strong open interest. Ripple’s XRP interest jumped to over $1.1 billion, the highest level this year. Most of this interest was in Binance, Bybit, Bitget, and OKX.
The upcoming Litecoin halving is one of the main reasons why this open interest is rising. As I wrote here, Litecoin will go through a halving event in August. This halving will lead to reduced block rewards in the ecosystem. Historically, cryptocurrencies tend to rally ahead of a halving event.
Litecoin price prediction
The 1D chart shows that the LTC crypto price made a bearish breakout recently. As it dropped, the coin moved below the important support level at $105.75, the highest point on February 16th. It has also fallen below the support at $97.7.
Most importantly, Litecoin has failed to move below the 50-day and 100-day exponential moving averages. This is a sign that there are some bulls in the market. Therefore, the bullish trend will likely remain intact as long as the coin is above the two moving averages. If this happens, the next levels to watch will be at $97.80 and $105.75, respectively.
